Q: With relevant examples, discuss the functions of a financial market.
A: Functions of a financial market #1 – Price Determination The financial market plays out the…
Q: Would usury laws help or hinder resolution of a shortage in financial markets?
A: Usury law is implemented by the government pertaining to interest on the loans taken by the…
Q: When the safe investments that pension funds usually rely on are paying less than 1 percent, then…
A: Pension funds are those funds that need to kept aside by the employer to be able to be given at the…
Q: Define Financial Intermediaries. Give two examples.
A: The economic activities include many such activities like insurance, transactions, dealing,…
Q: Which of the following is not a primary participant in the financial marketplace? a. governments b.…
A: A financial market is a place where stocks, bonds, and money are exchanged.
Q: Explain the ways in which financial institutions manage credit risk.
A: Credit: This term has numerous implications in the financial world, however, acknowledge is, for the…
Q: financial market
A: The safety of the asset depends on few characteristics. These will decide weather the asset is safe…
Q: Explain why emerging market economies is important in financial markets?
A: Financial markets represent the marketplace in which the buyers and sellers trade various financial…
Q: Why are non-banking financial companies valuable to the financial system? Elaborate all the…
A: India's financial administration's area is colossal. It doesn't simply contain business banks yet in…
Q: In the financial market, if the quantity of funds demanded is greater than the quantity of funds…
A: When the demand for funds increases and the supply of funds is not full fill that demand the…
Q: Market interest rates are established by the banks or any financial institutions. True or false?
A: Answer - Market Interest rate - It is the interest rate given on the deposits or other investments…
Q: At the Great Recession of 2008, why would Wall Street buy mortgages of people who had really bad…
A: Wall Street buy mortgages of those people who really have a bad credit rating and no down payment…
Q: Is selling bonds on the capital market indirect or direct financing? Is taking out a loan a…
A: Answer - Thank you for submitting the questions.But, we are authorized to solve only 3 sub parts…
Q: Why is it so important to an economy to have fully developed financial markets?
A: Financial markets are those markets in which creation and trading of financial assets take place .…
Q: discuss four factors that can cause financial intermediation to fail.
A: The procedure of transferring money from economic actors with excess funds to those who want to use…
Q: How do economists define equilibrium in financial markets?
A: The price is the difference between what providers receive and what demanders pay in any market.…
Q: Explain why the existence of financial institutions can allocate financial resources better!
A: Good financial sectors mean banks and financial institutions have a major role to play in the health…
Q: What are the different Financial Intermediaries and explain how they carry out the objectives of the…
A: Financial markets (such as those in which stocks or bonds are traded), securities (from bank CDs to…
Q: How do standardized accounting principles help financial markets work more efficiently?
A: Adverse selection problem refers to the costs to one party in a market transaction that arises due…
Q: Two of the economy's most important financial intermediaries are suppliers of funds and demanders of…
A: Financial intermediary refers to an organisation that helps investors to provide money to…
Q: List the main function of investment banks in the financial system?
A: Investment banks are the banks that help startup companies to launch. It acts as an intermediary…
Q: Explain the functions of financial markets with the help of a structured diagram.
A: Working of Financial Market The activity of lending and borrowings occurs in the Financial/Monetary…
Q: Financial Innovations have become a feature of Ghana’s Financial Markets over the past five years.…
A: The enactment of the economic recovery program (ERP) and Financial sector assessment program (FSAP),…
Q: If interest rates increase in financial markets, then...
A: Interest rates are defined as the charges taken by the lenders for the money lent ti the borrower.…
Q: What is importance of financial markets for the productive capacity of the economy?
A: The economies work with the motive of increasing, or enhancing their overall economic growth, and…
Q: Analysis of how the actions of financial intermediaries can result in an economic crisis e.g., the…
A: One of the primary reason for economic crisis is the lose in consumer confidence. This is because…
Q: What type of open market operation is expansionary? (Is it a purchase or sale of bonds?)
A: Open market operations refer to purchase and sale of bonds
Q: . Explain the term capital market and provide examples of this
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Explain why financial markets are increasingly becoming global.
A: We have show that as an Financial markets have become international and highly active, with…
Q: Why are financial intermediaries willing to engagein information collection activities when…
A: The financial intermediaries provide different instruments to their customers. They provide…
Q: why does selling bonds by the Treasury to the financial market raise interest rates
A: The monetary policy is the policy of the central bank regarding the money supply and interest rate…
Q: Explain how accounting is used to track and monitor economic events that impact capital markets
A: Financial accounts play a vital role that allows businesses to keep a track of all the financial…
Q: Which of the following is TRUE about financial regulations? * A. Financial regulations makes the…
A: Financial Institutions are defined as those companies which deal in financial and monetary…
Q: seven major financial institutions
A: Financial institutions today help the economy to lend, distribute and borrow money for various…
Q: Explain what is meant by Creation of NPAs as a challenge faced by financial system
A: A non-performing asset widely known as NPAs is a loan or an advance for which the principal amount…
Q: An efficient financial market means transaction costs. True or False?
A: Transaction costs are the costs associated with purchasing or selling a product or service.
Q: Question 1 Briefly explain how the adverse selection problem can affect the financial markets.…
A: Financial market is defined as an area or a place where buying and selling of financial assets take…
Q: Define the term financial market and give examples to explain your understanding
A: Countries financial system facilitates the movements of funds from savers to borrowers . And…
Q: What is the difference between detachable stock warrants and convertible bonds?
A: A bond is essentially an advance taken out by an organization. Rather than going to a bank, the…
Q: Provide one sentence discussion of your understanding to the importance of each role of global…
A: The monetary institutionFirst and foremost, we must define a financial institution. A financial…
Explain why repurchase agreements (repo) and securities are used as a lending practice
in capital markets?
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- Would the interest rate increase be more likely to hurt or help the financial institution’s profitability?Explain the difference of the demand of financial services of the rich and middle income people and poor people. *Is selling bonds on the capital market indirect or direct financing? Is taking out a loan a indirect or direct financing? Is investing in a mutual fund indirect or direct financing? Is selling stock on the stock market indirect or direct financing?
- What is the difference between detachable stock warrants and convertible bonds?Which of the following is NOT typically a role for a financial intermediary...? make public financial statements of borrowers evaluate the riskiness of lending to borrowers pool funds from lenders monitor the financial conditions of borrowersExplain why emerging market economies is important in financial markets?
- Why is it important for people who own stocks and bonds to diversify their holdings? What type of financial institution makes diversification easier?Explain the ways in which financial institutions manage credit risk.highlight the role played by investment banks in mergers and acquisitions and explain the advantages and disadvantages